One more try for the Marriott money

TRENTON — The public board that oversees the city’s only hotel will give a request for funding an old college try.

On Wednesday night, the Lafayette Yard Community Development Corporation approved to send a proposal for $3 million to city council to pay for renovation and transition costs for the Trenton Marriott.

Marriott is slated to pull out of the city’s only hotel on June 14. The management company that plans to take over, Marshall Hotels & Resorts, and Wyndham are requiring the money to continue operations.

Last week, a request for $200,000 for a new reservation system was pulled from the council’s agenda because Business Administrator Sam Hutchinson told council the state needed a comprehensive plan before it would continue supporting the hotel.

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At a meeting Tuesday with officials from the New Jersey Department of Community Affairs, Mayor Tony F. Mack’s administration and the LYCDC, it was determined that the $200,000 didn’t need the state’s approval because it was already budgeted.

So in addition to the $3 million on the table next week, the LYCDC will also be seeking $200,000.

But the LYCDC might have a difficult time receiving enough votes for the funding.

Two months ago, council narrowly passed providing nearly $300,000 geared at paying overdue bills to avoid a March shutdown in a 4-3 vote.

Councilwoman Marge Caldwell-Wilson, who voted in favor of that cash call, said last week she will no longer support funding the Marriott unless a buyer is pursued.

If the measures fail, the outcome could have a devastating impact on the hotel.

When asked if selling the hotel is an option now, Kersey said, “It’s not a wise decision to sell right now. We need to get the hotel up before we sell it, so that we can get a better price for it.”

The 197-room hotel, which opened in 2002, is plagued with approximately $30 million in debt, which includes a $14 million city bond, a combined $9 million in state loans and more than $7.3 million owed in a note to the Trenton Parking Authority.

The hotel’s asset manager said recently the city-owned hotel is valued at $3 million on the low end.

DCA Director Thomas Neff said in a letter addressed to the city that a consensus from the participants at this week’s meeting that “steps need to be taken to make the hotel less of a burden on taxpayers, which would ideally include a sale of the asset.”

“There was also a consensus that simply allowing the hotel to shut down would make it less likely, not more likely, for the hotel to be sold in the marketplace,” he stated.

Kersey said it will be up to council members if they want to sell the hotel for $2 or $3 million with all the debt that is owed.

About the Author

Originally from Webster, N.Y., David has been a reporter in N.J. for the past three years (first in Phillipsburg and now in Trenton).He is a Temple alum who interned at the Philadelphia Daily News. Reach the author at dfoster@trentonian.com
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